Which items in the Big Blue Swim School disclosure document relate to fees?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
| the site for you. We will review potential Sch | ool sites that you identify within the Territory and | ||
|---|---|---|---|
| may, but have no obligation to, visit the Territory once (for no additional fee) to review potential | |||
| sites for each | BIG BLUE Swim School to be constructed and developed. We have the right to | ||
| require you to reimburse our out-of-pocket expenses for each site visit after the first per-School | |||
| visit. That payment is not refundable. | |||
| Column 1 | Column 2 | Column 3 | Column 4 |
| Type of Fee(1) | Amount(2) | Due Date | Remarks |
| --- | --- | --- | --- |
| Brand Fund Contributions | Up to 3% of School’s Gross Revenue(3) during each Calculation Period(4); we currently charge 2% of School’s weekly Gross Revenue | Due within certain number of days after end of each Calculation Period (4) | |
| Member Services Center Fee (“MSC Fee”) | Up to 2% of School’s Gross Revenue(3) during each Calculation Period(4); we currently do not charge this fee | Due within certain number of days after end of each Calculation Period (4) | We have the right, directly or through a |
| designated source (including an affiliate), to | |||
| develop, implement, operate, maintain, and | |||
| improve a member services center for th | |||
| benefit of all BIG BLUE Swim Schools and | |||
| which all BIG BLUE Swim Schools mus | |||
| use. The MSC might perform various services | |||
| for BIG BLUE Swim Schools and their | |||
| customers, including scheduling free tria | |||
| lessons and reserving lesson times for | |||
| helping resolve customer complaints and | |||
| concerns, and maintaining a customer | |||
| database that provides management reports to | |||
| franchisees. We currently do not operate an | |||
| MSC or charge this fee. | |||
| Podium | $285 per month; optional purchase of a telephone ranging from $30-$160 | Monthly | Podium is our mandatory customer relations software. You will pay us monthly with the second invoice of the month. We have the right to increase this fee to the extent the vendor increases its charge to us. These amounts are a pass-through to you; we do not upcharge the vendor’s fees. You may (but have no obligation to) purchase a telephone for your School. |
| Uberall | $20 per month | Monthly | Uberall is our mandatory social posting and |
| listing management service. You will pay us | |||
| monthly with the second invoice of the | |||
| month. We have the right to increase this fee | |||
| to the extent the vendor increases its charge to | |||
| us. These amounts are a pass-through to you; | |||
| we do not upcharge the vendor’s fees. | |||
| Column 1 | Column 2 | Column 3 | Column 4 |
| Type of Fee(1) | Amount(2) | Due Date | Remarks |
| --- | --- | --- | --- |
| Email Licenses | 5 licenses are included free of charge; for each license over the first 5, you must pay us $6 per month for a basic license and $12 a month for a standard license | Monthly | This is an optional charge. If you wish to have more than 5 email licenses for your School, we will bill you in the same manner as we bill you for your royalty payments. We may increase these charges to no more than $10 per month for a basic license and $20 per month for a standard license. |
| Local Marketing Spend | 6% of School’s quarterly Gross Revenue | Quarterly | |
| Cooperative Contributions(5) | An amount we specify up to 4% of School’s Gross Revenue(3) during each Calculation Period(4) | As specified | We have not yet formed any Cooperatives and do not yet require Cooperative contributions. Footnotes 5 and 6 below describe your local advertising obligations. |
| Franchise Agreement Preparation Fee | $2,500 | When you sign a franchise agreement for a subsequent location | |
| Successor Franchise Fee | $5,000 | When you sign successor franchise agreement (if you have that right) | |
| Transfer of Franchise Rights or Controlling Ownership Interest in Franchisee | $25,000 (or $12,500 if proposed transfer is among your existing owners, immediate family members, or an entity you control) | Upon transfer | |
| Column 1 | Column 2 | Column 3 | Column 4 |
| --- | --- | --- | --- |
| Type of Fee(1) | Amount(2) | Due Date | Remarks |
| Transfer of Non Controlling Ownership Interest in Franchisee | $5,000 | Upon transfer | |
| Ongoing and Supplemental Training and Assistance | Our then-current fee for ongoing and supplemental training and assistance; not to exceed $500 per trainer per day or $2,000 in total if at our location and not to exceed $750 per trainer per day plus our expenses if elsewhere | As incurred | We have the right to charge you for ongoing and supplemental training and assistance that you request or that we determine you need to address issues specific to your School. |
| Retraining of Managers | Our then-current retraining fee; not to exceed $500 per trainer per day or $2,000 in total if at our location and not to exceed $750 per trainer per day plus our expenses if elsewhere | As incurred | Due if (i) your general manager or assistant manager fails to complete initial training program, or (ii) we must train their replacements. |
| Periodic Meeting / Convention | Will vary under circumstances (not to exceed $2,500 per person; does not include your actual out-of-pocket attendance costs paid to third parties) | As incurred | You (or your designated representative we approve) must at our request attend a periodic meeting of all BIG BLUE Swim School franchisees and pay an attendance fee. We will charge this fee even if you do not attend. |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 34–37)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, Item 6 specifically outlines various fees franchisees may encounter. These include ongoing fees like Brand Fund Contributions, which can be up to 3% of the school's gross revenue, and a potential Member Services Center Fee of up to 2% of gross revenue, although this fee is currently not charged. Additionally, franchisees are required to use certain software, such as Podium ($285 per month) and Uberall ($20 per month), which contribute to monthly expenses. There are also optional fees, such as those for additional email licenses beyond the initial five provided.
Beyond the regular operational fees, Big Blue Swim School franchisees should also be aware of other potential costs. These include a Local Marketing Spend requirement of 6% of the school’s quarterly gross revenue. There are also fees associated with specific events, such as a Franchise Agreement Preparation Fee of $2,500 for subsequent locations, a Successor Franchise Fee of $5,000, and fees for transferring franchise rights, which can range from $5,000 to $25,000 depending on the nature of the transfer. Furthermore, Big Blue Swim School reserves the right to charge for ongoing training and assistance, as well as for retraining managers, with costs varying depending on the location and extent of the training.
Prospective Big Blue Swim School franchisees need to carefully consider these fees as part of their overall investment and operational costs. Understanding the mandatory versus optional nature of certain fees, as well as the conditions under which they may be incurred, is crucial for accurate financial planning. The potential for increases in vendor-related fees (like Podium and Uberall) should also be factored into long-term financial projections. The FDD provides detailed information to help franchisees understand these financial obligations and make informed decisions.